Effect of Group Participation on Access to Micro-Credit among Rural Women in Osun and Oyo States, Nigeria

Abstract

Various reports have it that poverty is more prevalent among people in rural communities with women being the most vulnerable group. Globally, improved access to micro credit is promoted as an important strategy in the struggle against poverty in developing economies. Using a sample of 104 rural women selected through multi-stage sampling technique, this study examined group participation and access to micro credit among women in rural communities of Osun and Oyo States, Nigeria. The results showed that about 85.6% of rural women belonged to micro credit groups notably religious and traders associations through which 42.3% were able to source credit. Rural women were only able to meet 40.3% of the capital need through micro-credit offered by the groups. Cooperative societies granted higher volume of credit than the local groups while women farmers had access to greater volume of credit than women traders; however, micro credit was yet to have significant impact on poverty status of the women.